India will allow domestic private airlines to fly on lucrative international routes as a part of its drive to strengthen and expand the nascent sector, Civil Aviation Minister Praful Patel said on Wednesday.

Until last year, only India's two state-owned carriers -- international flag carrier Air India and the mostly domestic Indian Airlines were allowed to fly on international routes.

"The cabinet today approved domestic private airlines to fly overseas, apart from the Gulf countries," Patel told reporters after a cabinet meeting in New Delhi.

The move will boost the prospects of private airlines such as Jet Airways, India's biggest domestic airline, and Sahara Airlines, the third ranked local carrier.

A ministry statement said domestic airlines planning to fly overseas needed to have been in the business for five years and have a fleet of at least 20 aircraft.

But Patel said the two state-owned carriers will be allowed to retain their monopoly to fly to the Gulf region for the next three years to protect their businesses.

"Most of their operational revenue and profit on international routes accrue from these routes," a ministry statement said.

A large number of Indian professionals, most of whom travel regularly to the country, are working in Gulf countries such as Saudi Arabia, Kuwait and the United Arab Emirates.

India's aviation sector is growing on the back of rising domestic air travel in Asia's fourth-largest economy. A cut in government taxes and increased competition has resulted in lower fares that are boosting business and tourist travel in the country.

Domestic air travel market expanded 26.5 percent to 18.52 million passengers in the first half of the fiscal year to March.

As a result, almost all airlines have chalked out ambitious expansion plans and some corporates have rushed to start budget carriers as well.

(Reuters)